Solar stocks, including Suzlon Energy, Premier Energies and Waaree Energies, traded lower on Monday amid profit-taking and a muted trend in the broader Indian stock market today.
Suzlon Energy share price fell as much as 1.10% to Rs 47.57 apiece, while Premier Energies share price declined 0.57% to Rs 1,040 apiece on the BSE. Waaree Energies shares dropped as much as 0.36% to Rs 2,693.60.
Solar stocks came in focus after a report said the government is working on a production-linked incentive (PLI) scheme for polysilicon manufacturing, as part of broader efforts to strengthen India's domestic solar supply chain and reduce its dependence on imports.
Polysilicon, a key raw material used in the production of solar photovoltaic (PV) modules, is currently sourced entirely from overseas.
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India's existing PLI scheme for solar PV modules covers various stages of the value chain, including ingots, wafers and polysilicon on the upstream side, as well as cells and modules downstream. However, the report noted that uptake in the upstream segments has remained limited.
Meanhwhile, Premier Energies shares also reacted to its Q1 results announced on August 7.
Premier Energies reported a 53% year-on-year (YoY) rise in consolidated net profit to Rs 471.9 crore for the first quarter of FY27. The company's total income in Q1FY27 grew to Rs 2,507.6 crore from Rs 1,869.5 crore a year ago.
During the quarter, the company produced 844 MW of solar cells, 953 MW of solar modules, and 570 MVA of transformers.
ICICI Securities believes that the company's wafer-to-cell spread remains healthy, while the spread on cell-to-module has declined sharply. The order book stands at Rs 150 billion, up 74% YoY, with order inflow during Q1 at Rs 33 billion, up 67% YoY.
The brokerage firm maintained a ‘Buy' rating on Premier Energies shares with an unchanged target price of Rs 1,250 apiece.
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On the other hand, Waaree Energies announced that its wholly-owned subsidiary Waaree Clean Energy Solutions Private Limited, incorporated a subsidiary WCES Two Private Limited on August 04.
The new company has been incorporated for the purpose of supplying green hydrogen.
Here's what technical charts of Suzlon Energy, Premier Energies and Waaree Energies indicate:
Suzlon Energy
Suzlon Energy share price was consolidating in the Rs 48 – Rs 49 range throughout last week.
“Suzlon Energy stock price has now slipped below the lower end of the range and is also trading below key moving averages, indicating weakness. The rising ADX points to strengthening bearish trend momentum,” said Sudeep Shah - Head of Technical and Derivatives Research at SBI Securities.
According to him, as long as Suzlon shares trade below the Rs 49 – Rs 50 zone, the trend is likely to remain bearish.
Premier Energies
Premier Energies share price has been consolidating within the Rs 977 – Rs 1,063 range since July 22.
“Over the last six trading sessions, the stock has been hovering around its 20- and 50-day EMA band, while the moving averages have flattened, reflecting a sideways bias. The ADX on the weekly timeframe remains flat, further indicating a lack of directional momentum and volatility. A decisive breakout on either side of the range will provide further directional cues,” said Shah.
Waaree Energies
Waaree Energies share price remains in a downtrend, forming a lower-low, lower-high pattern. The MACD line is below the zero line, indicating a bearish bias, while the stock continues to trade below key moving averages.
“The Rs 2,790 – Rs 2,800 zone is likely to act as an immediate resistance. The bearish bias is likely to persist as long as Waaree Energies share price trades below this zone,” added Shah.
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